What is the first step to starting a college?

Mission and model, then legal formation and state authorization. No accreditor will consider an institution that is not first authorized by its state to operate and grant degrees.

How long does it take to start a college?

Commonly 3 to 7 or more years, because accreditation (eligibility, candidacy, then initial accreditation) is a multi-year process and most accreditors require the school to already be operating with students first.

Do I have to be accredited to grant degrees?

You need state authority to grant degrees, which is separate from accreditation. But without accreditation your degrees carry little recognition and your students cannot receive federal financial aid.

Nonprofit or for-profit, which is faster to federal aid?

Nonprofit. A nonprofit can qualify for Title IV while still a candidate for accreditation; a for-profit must be fully accredited and have operated for two years first.

What faculty do I need?

Generally faculty holding a degree at least one level above what they teach: a master's (or master's plus 18 graduate hours) in the discipline for undergraduate courses, and a terminal degree for graduate courses.

How to Start a College or University: The Three-Legged Stool

The idea

Three legs, in order

Starting a new college is not one approval but three, and they must happen in sequence. A state grants the legal authority to operate and to confer degrees. A recognized accreditor then takes the institution through eligibility, candidacy and finally initial accreditation, the slowest leg, commonly three to seven or more years. Only then can the U.S. Department of Education certify the school for Title IV federal student aid. Miss the order and nothing works: no accreditor will look at you without state authority, and federal aid will not flow without accreditation.

The one big fork is nonprofit versus for-profit, and it changes the timeline, not just the taxes: a nonprofit can reach federal aid while it is still a candidate for accreditation, while a for-profit must be fully accredited and have operated for two years first. See Nonprofit or for-profit.

Step 1

Mission, model and institution type

Start with mission, academic model and a market or needs analysis, which is often a state requirement, not just good practice. Decide the essentials that drive everything downstream: two-year or four-year or graduate-only; residential or online; and the sector. Degree level sets which accreditor scope applies and what faculty credentials you need. A predominantly online model (51%+ distance) points toward DEAC; a campus-based institution chooses a historically regional accreditor by geography and mission fit.

Step 2

Legal formation

Form the legal entity and choose your sector. A nonprofit incorporates under state nonprofit law, seats an independent board of trustees, and applies to the IRS on Form 1023 ($600 user fee); for federal purposes a nonprofit must hold a 501(c)(3) determination, so that letter is effectively a Title IV prerequisite. A for-profit forms a corporation or LLC and can raise equity, but cannot take tax-deductible gifts and faces heavier federal rules later.

Like K-12 private schools, a degree-granting nonprofit must adopt and publicize a racially nondiscriminatory policy under IRS Rev. Proc. 75-50 / 2019-22 and certify it annually on Form 990. A proposed IRS rule in this area was published in 2026 and is not yet final, verify before relying on it.

Step 3

Faculty, governance and facilities

Accreditors judge the institution you build. Faculty credentials follow a widely used benchmark (the SACSCOC guidelines): instructors of transferable and baccalaureate courses hold a doctorate or a master's in the discipline, or a master's plus at least 18 graduate semester hours in it; graduate courses require an earned terminal degree. The rule of thumb is one degree level above what you teach.

Governance: an independent board with fiduciary authority and a qualified president. NWCCU requires a board with at least five voting members, a majority of whom have no employment or financial interest in the institution, which for-profits often must restructure to meet.
Finances: audited statements and demonstrated stability; WSCUC and DEAC front-load a financial review.
Resources: library and learning resources, student services and facilities appropriate to the mission and modality.

Step 4

Walk the three legs

With the institution designed, work the three legs in order. Each has its own page:

State authorization — the legal right to operate and grant degrees.
Accreditation from scratch — eligibility, candidacy, then initial accreditation.
Title IV eligibility — federal student aid certification.
Then see Costs & timelines and, for an existing institution, Adding a new degree program.

Keep going

Related resources

See Accreditation for how review works, College Degrees for the credential landscape, and the K-12 companion Starting a School.

Questions

Frequently asked questions

What is the first step to starting a college? Mission and model, then legal formation and state authorization. No accreditor will consider an institution that is not first authorized by its state to operate and grant degrees.
How long does it take to start a college? Commonly 3 to 7 or more years, because accreditation (eligibility, candidacy, then initial accreditation) is a multi-year process and most accreditors require the school to already be operating with students first.
Do I have to be accredited to grant degrees? You need state authority to grant degrees, which is separate from accreditation. But without accreditation your degrees carry little recognition and your students cannot receive federal financial aid.
Nonprofit or for-profit, which is faster to federal aid? Nonprofit. A nonprofit can qualify for Title IV while still a candidate for accreditation; a for-profit must be fully accredited and have operated for two years first.
What faculty do I need? Generally faculty holding a degree at least one level above what they teach: a master's (or master's plus 18 graduate hours) in the discipline for undergraduate courses, and a terminal degree for graduate courses.